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Siemens to Fire 3,800 Workers and Transfer Another 3,000From its Telecommunications branch |
By Florin Troaca, Communications News Editor
26th of February 2008, 19:52 GMT
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Siemens Enterprise Communications GmbH & Co KG (also known as SEN), the telecommunications branch of Siemens AG, today announced that it plans to restructure its orientation
and activity and transform from a hardware supplier into a software and solutions provider. In today's continuously changing telecommunications market, this reorientation is imperative and comes to support Siemens' efforts to find a competent partner for SEN.
"We will begin accelerating the reorientation of SEN and the related restructuring activities under the control of Siemens to ensure that personnel measures associated with these changes will be as socially compatible as possible," said Joe Kaeser, Siemens CFO.
The company's reorientation implies cutting down about 3,800 jobs worldwide, including 2,000 in Germany, and the transfer of roughly 3,000 employees (about 1,200 being from Germany). In Germany, Siemens' home country, the most affected functions will be the administrative and support ones. "We want to immediately begin negotiations with the employee side in Germany about settling interests, and hope to conclude these talks as quickly as possible to give employees the greatest possible certainty about what awaits them in the future," said Siegfried Russwurm, head of Corporate Human Resources and Labor Director at Siemens.
Since it's changing into a software provider, SEN will no longer need manufacturing operations, hence it will sell the plants it currently owns, including the Leipzig (Germany) plant and the facilities in Curitiba (Brazil) and Thessaloniki (Greece). Moreover, SEN's order call centers from Argentina, Chile, Peru, Ecuador and Colombia, which employ about 1,100 people, are also planned to be sold.
Siemens AG is employing around 400,000 people worldwide and it is Europe's largest engineering conglomerate. Its mobile phone division was sold in 2005 to BenQ, the Taiwanese electronics manufacturer, and after today's announcement it looks like the rest of the Telecommunications branch, SEN, is not doing too well either.
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